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Is there an environmental Kuznets curve for water use? A panel smooth transition regression approach

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  • Rosa Duarte

    (Department of Economic Analysis, Faculty of Economics and Business Studies, Universidad de Zaragoza)

  • Vicente Pinilla

    (Department of Applied Economics and Economic History, Faculty of Economics and Business Studies, Universidad de Zaragoza)

  • Ana Serrano

    (Department of Economic Analysis, Faculty of Economics and Business Studies, Universidad de Zaragoza)

Abstract

This paper presents an analysis of the relationship between per capita water use and per capita income for 65 countries over the period 1962-2008 within the framework of the so-called environmental Kuznets curve (EKC). Consistent with the existing literature, a polynomial fixed effects model is firstly presented. Then, a logistic Panel Smooth Transition Regression (PSTR) is estimated, capturing individual heterogeneity and time variability of income elasticity. This empirical study yields several important findings. The nexus between water withdrawal per person and per capita GDP is non-linear, showing a peculiar U-inverted with a marked downward limb that dominates the nexus regardless the estimation method chosen. On the whole, water use income elasticity clearly decreases throughout the period; nevertheless it exhibits a great variability over the sample, reflecting the divergent patterns of water use depending on the level of income of each country and period.

Suggested Citation

  • Rosa Duarte & Vicente Pinilla & Ana Serrano, 2012. "Is there an environmental Kuznets curve for water use? A panel smooth transition regression approach," Documentos de Trabajo dt2012-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
  • Handle: RePEc:zar:wpaper:dt2012-03
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    2. Duarte, Rosa & Pinilla, Vicente & Serrano, Ana, 2014. "The water footprint of the Spanish agricultural sector: 1860–2010," Ecological Economics, Elsevier, vol. 108(C), pages 200-207.
    3. Raúl Serrano & Marta Fernández-Olmos & Vicente Pinilla, 2015. "International diversification and performance in agri-food firms," Documentos de Trabajo dt2015-01, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    4. Duarte, Rosa & Pinilla, Vicente & Serrano, Ana, 2014. "The effect of globalisation on water consumption: A case study of the Spanish virtual water trade, 1849–1935," Ecological Economics, Elsevier, vol. 100(C), pages 96-105.
    5. Jeannine Bailliu & Doga Bilgin & Kun Mo & Kurt Niquidet & Benjamin Sawatzky, 2019. "Global Commodity Markets and Rebalancing in China: The Case of Copper," Discussion Papers 2019-3, Bank of Canada.
    6. Ben Nasr, Adnen & Gupta, Rangan & Sato, João Ricardo, 2015. "Is there an Environmental Kuznets Curve for South Africa? A co-summability approach using a century of data," Energy Economics, Elsevier, vol. 52(PA), pages 136-141.
    7. repec:gam:jsusta:v:11:y:2019:i:6:p:1787-:d:216873 is not listed on IDEAS
    8. Gopalan, Sasidaran & Rajan, Ramkishen S., 2016. "Has Foreign Aid Been Effective in the Water Supply and Sanitation Sector? Evidence from Panel Data," World Development, Elsevier, vol. 85(C), pages 84-104.
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    10. Jian Chai & Ting Liang & Xiaoyang Zhou & Yunxiao Ye & Limin Xing & Kin Keung Lai, 2016. "Natural Gas Consumption of Emerging Economies in the Industrialization Process," Sustainability, MDPI, Open Access Journal, vol. 8(11), pages 1-16, October.
    11. Ignacio Cazcarro & Rosa Duarte & Miguel Martín-Retortillo & Vicente Pinilla & Ana Serrano, 2014. "Water scarcity and agricultural growth in Spain: from curse to blessing?," Documentos de Trabajo (DT-AEHE) 1419, Asociacion Espa–ola de Historia Economica.
    12. Hao, Yu & Wei, Yi-Ming, 2015. "When does the turning point in China's CO2 emissions occur? Results based on the Green Solow model," Environment and Development Economics, Cambridge University Press, vol. 20(06), pages 723-745, December.
    13. Ivan Roberts & Trent Saunders & Gareth Spence & Natasha Cassidy, 2016. "China's Evolving Demand for Commodities," RBA Annual Conference Volume,in: Iris Day & John Simon (ed.), Structural Change in China: Implications for Australia and the World Reserve Bank of Australia.
    14. Menegaki, Angeliki N. & Tsagarakis, Konstantinos P., 2015. "Rich enough to go renewable, but too early to leave fossil energy?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1465-1477.
    15. repec:eee:apmaco:v:273:y:2016:i:c:p:290-307 is not listed on IDEAS

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    Keywords

    Water use; Panel Smooth Transition Regression model; Environmental Kuznets Curve; nonlinearity; per capita income;

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